Nouvelles

Military.com | By Gina Harkins The next generation of Canadian sailors has grown up with phones in their hands, and they're not likely to give up their connectivity for life on the high seas. When working with industry partners designing the technology needed on future Royal Canadian Navy ships, leaders are putting internet connection high on the list, Rear Adm. Casper Donovan, director of the navy's general future ship capabilities, said Tuesday. "We have sailors who've grown up in a digital world -- they are digital," Donovan said at the annual Sea-Air-Space expo near Washington, D.C. "... When they embark on a Canadian surface combatant and we tell them to lock up their phone, they won't just go 'OK.' "They won't join the navy," he said. https://www.military.com/daily-news/2019/05/08/canadian-admiral-kids-wont-join-navy-if-ships-dont-have-wi-fi.html

David Pugliese, Ottawa Citizen Federal officials are setting the stage to award Irving Shipbuilding contracts to build two more Arctic and offshore patrol ships but the vessels will be delivered to the Canadian Coast Guard instead of the navy. Irving has been warning the Liberal government it might have to lay off employees at its Halifax shipyard if it doesn't get more shipbuilding work. Industry and defence sources say to deal with that issue a proposal is being put together that would see the construction of two more Arctic and Offshore Patrol Ships, known as AOPS. Irving is currently building six AOPS for the Royal Canadian Navy. But under this new plan, described by government officials as being at a “pre-decision” level, the vessels would be turned over to the coast guard. The additional ships would help head off any layoffs at Irving and allow the Liberal government to head into the federal election in the fall claiming it was delivering on its promise to rebuild the coast guard. The Liberals have yet to sign off on the plan, the sources added. Ashley Michnowski, a spokeswoman for Procurement Minister Carla Qualtrough, said the national shipbuilding strategy or NSS is designed as a “made-in-Canada plan” to meet federal shipbuilding requirements. “Additional AOPS are currently not included in the NSS,” she added. Irving Shipbuilding did not respond to a request for comment. The NSS was supposed to prevent the boom and bust in the country's shipbuilding industry by providing Seaspan on the West Coast and Irving on the East Coast with continual work. But that hasn't happened. Even though the government is proceeding with the ships outlined in the NSS, both Seaspan and Irving have complained they might have to let employees go because of gaps in construction schedules. Irving has said it needs addition work to deal with a downturn that comes after the end of construction of AOPS and the start of work on a new fleet of surface combatant ships. The Arctic and Offshore Patrol Ships project was for the construction of five vessels. A sixth ship would be built only if Irving could find savings in the construction process, according to the federal government. That, however, didn't happen. In November the Liberal government announced it would award Irving a contract for a sixth AOPS as part of its efforts to stop layoffs. That $800-million initiative is double the usual cost of a single AOPS as there are hefty fees associated with stretching out the production of the fleet. It is unclear how much extra a plan to build two more AOPS would cost. If the plan does proceed there would have to be changes made to the design of the ship as the AOPS are outfitted with weapons and a combat management system for the navy. The AOPS program has made headlines over the years. The first Arctic Offshore Patrol Ship was supposed to be delivered in 2013 but the program has faced delays, and it is now expected to be delivered to the navy this summer. In March, Postmedia sent Procurement Canada questions about potential issues with welds on the ships. But the department immediately warned Irving that the news organization was asking questions. Department officials also provided Irving with personal information about the journalist inquiring about the welds. Procurement Canada never did answer the questions but a short time later Irving Shipbuilding threatened a lawsuit against Postmedia if an article was published claiming there were substantial problems with welds on the ships. The Department of National Defence later confirmed to the news chain there were issues with welds but they were minor. https://nationalpost.com/news/federal-bureaucrats-considering-proposal-to-award-irving-contracts-for-more-arctic-coast-guard-ships

QinetiQ has been awarded a C$51m (c£30m) contract to deliver unmanned aircraft systems (UAS) that will drive enhanced situational awareness for the Canadian Armed Forces. The contract will be delivered from QinetiQ's state-of-the-art unmanned vehicle manufacturing and operational facilities in Medicine Hat, Alberta. The vertical take-off UAS will provide Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) services to the Royal Canadian Navy and Special Operations Forces Command, for both domestic and international operations. The system, based on the UMS SKELDAR V-200 UAS, will be equipped with a number of sensors including an Active Electronically Scanned Array (AESA) radar and Electro-optic infrared (EO/IR) camera. Robert Aube, Managing Director of QinetiQ in Canada says, “We are delighted with this contract win to deliver critical over-the-horizon situation awareness to the Royal Canadian Navy and Special Operations Forces Command. This generates tactical advantages for commanders while minimising the risk to manned helicopters and personnel. As a result of the contract, we will be pleased to see a large number of jobs created in the Southern Alberta region where UAS repair and overhaul services will be carried out.” Aube continues, “We are dedicated to providing a world-class service for the Canadian Armed Forces and the information collected and used by a UAS system of this calibre will be critical for the men and women serving Canada, both domestically and abroad.” Iain Farley, Managing Director International Business at QinetiQ says, “International growth is a core part of QinetiQ's strategy and to facilitate this, we continue to make significant investments in our subsidiary businesses and complementary acquisitions. This contract provides an important proof point that this strategy is delivering. The investment we have made in Canada has helped secure our largest Canadian contract to date and provides us with a solid foundation for delivering further QinetiQ products and services into the Canadian market and beyond.” QinetiQ will work with four principal partners to deliver the ISTAR services: Canadian-UAV, Leonardo, UMS SKELDAR and Wescam: “This is an important contract win for us alongside our partners including QinetiQ and confirms our stated strategic commitment to working with global navies following our announcement last year with the German Navy,” explains Axel Cavalli-Björkman, CEO of UMS SKELDAR, the UAV joint venture between Sweden's Saab and UMS AERO GROUP of Switzerland. “With multiple systems to be delivered in Q3 this year, the Royal Canadian Navy have secured a maritime UAV platform that not only includes our heavy fuel engine manufactured by German-based Hirth Engines, but also has an ability to carry multiple payloads.” “L3 WESCAM is proud to have been chosen by QinetiQ, as it confirms our role as a trusted global supplier of advanced imaging technologies to the UAS market,” said Cameron McKenzie, Vice President, Global Sales & Business Development of L3 WESCAM. “In fact, this order marks many strategic firsts for WESCAM in the Canadian marketplace, including a first for our MX™ Series turrets to be used by the Royal Canadian Navy, a first order for our MX-8 and MX-10D in Canada and our first contract with QinetiQ in Canada.” Sean Greenwood, President, and CEO of Canadian UAVs says, “It's a privilege and an honor to be able to work with the Canadian Armed Forces and QinetiQ, especially on such a novel project. This is the foundational contract the Canadian UAV industry has been waiting for to become world-class in autonomous vehicle service delivery and technology development. QinetiQ's recognition of CUAVS' work to date with Transport Canada in developing advanced UAV operations and their commitment to supporting local SMEs has been fundamental to our growth and cannot be understated.” Wayne Smith, Head of Radar Campaigns from Leonardo says, “We are pleased to be a part of this project with QinetiQ. Our PicoSAR Active Electronically Scanned Array radar provides an unrivalled all-weather capability for Unmanned Aerial Systems. It delivers a high resolution Synthetic Aperture Radar imaging and Ground Moving Target Indication capability that will allow the SKELDAR V-200 to easily acquire a true, all-weather ground mapping and surveillance capability.” https://www.suasnews.com/2019/05/qinetiq-wins-c51m-contract-with-the-canadian-armed-forces-unmanned-aircraft-system-service-program

Murray Brewster · CBC News A little joke used to make its way around the Harper Conservative government every time National Defence presented Andrew Scheer's former boss with the bills for new equipment — about how Stephen Harper would emit an audible 'gulp' of alarm when they crossed his desk. Scheer, in the first of a series of election-framing speeches for the Conservatives, pledged yesterday to wrap his arms around Canada's allies, take the politics out of defence procurement, buy new submarines, join the U.S. ballistic missile defence program and expand the current military mission in Ukraine in an undefined way. What was absent from the Conservative leader's speech — a greatest-hits medley of road-tested Conservative policy favourites, blended with jabs at the Trudeau government's record — was an answer to the first question his supporters usually ask on these occasions: How are you going to pay for it? Deficit hawk or defence hawk? The Liberals have set the federal government on course to increase defence spending by 70 per cent by 2027. The cost of what Scheer is proposing — submarines and missile defence — would have to be shoehorned into that framework somehow. Either that, or he'd have to radically redesign the current defence spending program. Scheer's speech was greeted with raised eyebrows by more than one defence sector observer. "When he starts talking about deficits, you can kiss all that goodbye," said Stephen Saideman, a professor of international affairs at Carleton University. "In other speeches, he talked about being a deficit hawk. That would have real implications for the defence stuff." The Harper government increased defence spending during the Afghan war and made a series of promises to revitalize the military, but ended up cutting its budget and postponing projects in order to eliminate the deficit. 'Harper all over again' Saideman said Scheer's speech did not offer an ironclad guarantee that he'd avoid doing the same thing, and was even inaccurate in its characterization of the Liberals' record on defence spending. A full half to two-thirds of the defence and foreign policy vision Scheer laid out, he said, was "Harper all over again" — but with some surprising differences. His embrace of allies was much warmer than it was with the previous Conservative crowd, which tended to look upon NATO with a jaundiced eye. "I will reinvigorate Canada's role in the alliances we share with our democratic allies. This includes existing alliances like NORAD, NATO, the Commonwealth, La Francophonie and the Five Eyes, but it will also include overtures to India and Japan," Scheer said. He also pledged a Conservative government would do more in Eastern Europe. "This will include expanding upon the current missions to support Ukraine and providing Ukraine's military with the equipment they need to defend their borders," said the Conservative leader. Scheer didn't say in his speech what he wants Canada to do in Eastern Europe that it isn't doing now — short of putting combat troops on the front line of Ukraine's breakaway eastern districts, or selling offensive weapons to Kiev. Scheer did promise to take the lead on a potential United Nations peacekeeping mission, a proposal that has been out there in the international community for months and has largely gone nowhere. Other ideas that often go nowhere filled out the rest of Scheer's speech — like the promise of a fix for the Canadian military's complex, cumbersome system for buying equipment. Politicians are to blame, Scheer said. "Military procurement in Canada is hyper-politicized, to our detriment," he said. "By playing politics with these matters, governments have diminished the important responsibility to adequately and expediently equip the Armed Forces." To accept that argument, one must set aside his party's favourite rallying cry during the politically blistering F-35 debate of half a dozen years ago: If you don't support the plane, you don't support the troops. Politics-free procurement? Michael Byers, a University of British Columbia defence policy expert, said removing politics from procurement decisions would be a fantastic step forward, one that could save taxpayers boatloads of money by doing away with pet projects and regional interests. "It's an admirable goal, but he would be the first prime minister ever to take the politics out of defence procurement," he said. "So, I'm skeptical about whether he would actually do so ... I take that statement with a very large grain of salt." The absence of a clear fiscal pledge also troubles Byers, who noted that replacing Canada's Victoria-class submarines with either German or Swedish-built boats would be expensive. So would participation in ballistic missile defence, which has various levels of participation from research and development all the way up to anti-missile radar and batteries. It is, he said, all about the dollars. "I think that when we talk about defence spending and defence budgets, we have to talk about real money going out the door in terms of signed contracts," said Byers. "And neither the Conservatives nor the Liberals have been able to deliver much in the way of signed contracts for the last 20 years." https://www.cbc.ca/news/politics/scheer-rolls-out-an-ambitious-defence-agenda-but-critics-ask-where-s-the-money-1.5127028

DANIEL LEBLANC The American government is once again urging Canada to acquire U.S.-built fighter jets to replace its fleet of CF-18s, one day after it emerged the Pentagon recently threatened to pull the F-35 out of the $26-billion competition for new aircraft. The contradictory messages from the U.S. government showcase how the Americans are trying to prevent a tendering process that would favour European manufacturers at the expense of either the Lockheed Martin F-35 or the Boeing Super Hornet. The Canadian government is weeks away from launching a competition for 88 new fighter jets, with the two American firms set to enter into a competition against the Swedish Gripen and the Eurofighter Typhoon, which is built by a consortium that includes Airbus. In a statement on Tuesday, the American government called on Canada to make sure its fighter jets can operate alongside U.S. military aircraft around the world. The “crucial” point, according to the American government, is Canada's participation in the North American Aerospace Defence Command (NORAD) that controls the Canadian and American airspace. Only U.S.-built fighter jets currently operate in NORAD and European aircraft would face technological hurdles in gaining the ability to fully integrate into the bi-national military alliance. “We continue to believe in the importance of NATO and NORAD interoperability as a crucial component of Canada's acquisition of defence assets,” said Joseph Crook, a spokesman for the U.S. embassy in Ottawa. Mr. Crook added the American government remains “hopeful that U.S. firms are able to participate in open and transparent competition processes that can support Canada's NATO and NORAD obligations, especially when it comes to co-operative engagement capabilities.” On Monday, the Macdonald-Laurier Institute published letters from American officials who warned their Canadian counterparts last year that the F-35 might be pulled from the competition unless Canada's requirements for industrial benefits were modified. The American government is concerned about Canada's Industrial and Technological Benefits (ITB) policy, which requires the winner of the contract to invest the equivalent of the acquisition cost in Canada. Built by Lockheed Martin, the F-35 is a stealth aircraft developed by an international consortium of allied militaries under a program that specifically rejects the application of traditional industrial benefits. Canada has been a member of the program since 2006. In an interview after a cabinet meeting on Tuesday, Defence Minister Harjit Sajjan said he has sought to reassure the Americans by pointing out that the Canadian government will focus mostly on technical capabilities in deciding which aircraft to purchase. “First of all, the capabilities of the aircraft is the number one priority. Making sure we meet the needs of the Canadian Armed Forces – the Air Force in this particular case – is the number one priority. We will always make sure that will happen,” Mr. Sajjan said. He added that obtaining benefits for the Canadian economy is also important, while suggesting the matter will have less importance in the final weighting of the bids. “This obviously factors into the equation, but the capability requirements for the Canadian Armed Forces is always the number one priority,” he said. In a speech laying out his foreign-affairs policy on Tuesday, Conservative Leader Andrew Scheer said he will seek to modernize the NORAD alliance if his party forms the next government, including through the purchase of fighter jets that can defend North America alongside the U.S. fleet. “I will act to select a new fighter jet through an open competition and make sure the new jets are interoperable with our American allies,” Mr. Scheer said. Vice-Admiral Mathias Winter of the U.S. Navy said in a letter last December that Canada has received US$1.3-billion in economic benefits from its participation in the F-35 program to this point. “The F-35 supplier team will submit an F-35 offer only if (1) the ITB requirement is waived entirely and (2) there is no future ITB obligation arising from selecting the F-35,” Vice-Adm. Winter said in his letter. https://www.theglobeandmail.com/politics/article-us-government-urges-canada-to-acquire-american-fighter-jets-in-2/

Matt Gurney One can only imagine the astonishment in Ottawa when a letter arrived from Washington, reminding the Canadian government that military procurement projects are about procuring military equipment, not creating Canadian jobs. I like to imagine flabbergasted bureaucrats reading the letter over and over, before finally putting it down, rubbing their temples and musing aloud, “Don't the Americans realize how things are done here?” They do, it seems. And they don't like it. On Monday, the Macdonald-Laurier Institute published a new report, “Catastrophe: Assessing the Damage from Canada's Fighter Replacement Fiasco.” The title tells you most of what you need to know about the tone of the report. Author Richard Shimooka recaps the long and embarrassing history of Canada's inability to properly replace our rapidly aging and slowly attritting fleet of almost-40-year-old CF-18 jets. The report mostly covers a story that's been oft-told, including here in the National Post. But it did break some news: apparently, Washington's frustration with Canada is boiling over, and it's not keeping quiet about it anymore. Shimooka recaps the long and embarrassing history of Canada's inability to properly replace our rapidly aging ... CF-18 jets Shimooka's report reveals the existence of two letters previously unknown to the public, sent last year by American officials to Canadian counterparts. The specifics of the complaints involve fairly legalistic and technical aspects of Canada's membership in the international consortium that helped finance the development of the F-35 stealth fighter. Suffice it to say that Canada, as a participating nation, gets access to a rock-bottom price for the fighter (meaning the same cost paid by the U.S. military) and Canadian firms have been part of the production of the planes from the very beginning. That's the deal. It's a pretty good one. But Canada wants a different deal. Specifically, it wants the same kind of deal it always insists on when buying military equipment from abroad. We want any foreign company we're purchasing equipment from to invest heavily in Canada, so that even a contract signed with a foreign supplier can be shown to have helped Canadian jobs, and the middle class, and those working hard to join it. Even this is only a second-best option, a procurement Plan B. Canadian politicians would much rather have stuff built in Canada by Canadians, no matter how much that ends up costing us in terms of cost overruns and delays. But when that's simply not possible, we'll settle for industrial offsets from foreign companies. You'll note that in the above paragraph on military procurement, there was very little emphasis on actually successfully procuring equipment for the Armed Forces. Ottawa is much too sophisticated for that kind of concern. The real action is in the jobs, the industrial benefits, the gigantic novelty cheques, the ribbon cuttings, the question period talking points and the partisan mailers crowing about all the money flowing to Canadian firms. That's what military procurement is really for, at least in the eyes of Canadian officials. That's why our national shipbuilding strategy was to first build out a shipbuilding industry and then build some ships, almost as an afterthought, when we could have bought them faster and almost certainly cheaper from an ally. The Americans, it seems, have had enough, and are threatening to pull the F-35 from consideration in Canada's upcoming program to select our next fighter. To their mind, Canada has already been offered an objectively good deal: access to one of the world's most advanced fighter jets at the same cost the U.S. military pays, and billions in industrial benefits. It's true that the F-35 program has been troubled, but most of those problems are now behind it. These jets are entering service in large numbers in the U.S. military and in allied forces, as well. The F-35 isn't perfect but it's available, now, and Canada has already paid the cost of entry to the club. Angling for a better deal than everyone else is getting, is a slap in the face to the Americans and all the other allied nations who are part of the process. Angling for a better deal than everyone else is getting, is a slap in the face to the Americans Now a cynic will say that it's just good business. There's nothing wrong with Canada trying to get the best deal for itself. In general, I have an open mind to this kind of argument. But Canada isn't a business. It's a country that has signed alliances and agreements with our democratic peers, theoretically in good faith. We have our own interests, to be sure, but we also have obligations. Canada's membership in the F-35 consortium does not obligate us to buy F-35s. We'd retain the industrial benefits even if we select another fighter. But certainly it obligates us to at least honour the agreement we've already made? The Liberals have never been keen on the F-35. Before the past election, they actually pledged to never purchase them, before realizing that that was an impossible pledge to keep if we actually intended to hold a fair and open competition to select the next plane. The prime minister himself once dismissively described the F-35 as a plane that didn't work, even as the United States was putting its first squadron into active service. Part of me wonders if the Liberals are deliberately structuring our selection process to make it impossible for the U.S. to sell us F-35s. That would certainly solve that particular problem for the Liberals. Alas, the more realistic answer is probably, as ever, the simplest one. The Canadian government is probably baffled that the Americans would object to us behaving as we always do. Military procurement in Canada isn't about procurement, or the military, or honouring our commitments to our friends. It's about political booty that can be flung around the country come election time. That's just the way we do things here. Why would that ever change? https://nationalpost.com/opinion/matt-gurney-is-it-any-wonder-the-u-s-is-steamed-at-us-over-our-fighter-jet-fiasco

David Pugliese, Ottawa Citizen The defence and aerospace industry is abuzz about the letters the U.S. government sent to Canada over the upcoming competition to acquire a new fleet of fighter jets to replace the RCAF's CF-18s. In short, the Trump administration has given an ultimatum to Prime Minister Justin Trudeau and his government. If Canada insists that industrial and technological benefits must come from the outlay of $19 billion for a new fighter jet fleet then Lockheed Martin's F-35 stealth jet is out of the race. Full stop. The U.S. argument is that because Canada is a partner in the F-35 program it cannot ask Lockheed Martin to meet specific industrial benefits for a Canadian competition if the F-35 is selected. Under the F-35 agreement, partner nations are prohibited from imposing requirements for industrial benefits as the work is determined on the best value basis. In other words, Canadian firms compete and if they are good enough they get work on the F-35 program. Over the last 12 years, Canadian firms have earned $1.3 billion U.S. for their work on building F-35 parts. The U.S. had boldly stated it cannot offer the F-35 for the Canadian competition if there are requirements to meet for set industrial benefits. But that ultimatum could seriously backfire on the Trump administration. Trudeau and the Liberal government has never been keen on the F-35 (Trudeau campaigned against purchasing the jet). There have also been a number of negative headlines over the last year outlining the increasing maintenance costs for the F-35s, not a good selling point for the jet. The U.S. ultimatum may have just given Trudeau a way out of his F-35 dilemma, particularly if the prime minister can say that it was it was the Americans themselves who decided not to enter the F-35 in the Canadian competition. Trudeau will also be able to point to the other firms ready and keen to chase the $19 billion contract. Airbus, a major player in Canada's aerospace industry, says it is open to producing its Eurofighter Typhoon in Canada with the corresponding jobs that will create. Boeing, which has a significant presence in Canada, will offer the Super Hornet. Saab has also hinted about building its Gripen fighter in Canada if it were to receive the jet contract. To be sure, if the U.S. withdraws the F-35 from the competition, retired Canadian military officers and the defence analysts working for think-tanks closely aligned with the Department of National Defence be featured in news reports about how the Royal Canadian Air Force will be severely hindered without the F-35. Some Canadian firms involved in the F-35 program may complain publicly about lost work on the F-35 program but companies tend not criticize governments for fear they won't receive federal contracts or funding in the future. There will be talk about how U.S.-Canada defence relations will be hurt but then critics will counter that U.S. President Donald Trump used national security provisions to hammer Canada in ongoing trade disputes. And let's face it. Defence issues are rarely a factor in federal elections or in domestic politics. The Trump administration, which is not the most popular among Canadians, may have just given Trudeau a political gift. https://nationalpost.com/news/national/defence-watch/trump-may-have-given-trudeau-the-excuse-he-needs-to-ditch-the-f-35/wcm/08b1313f-81eb-4adc-9ebf-b54ffc19c2c7

By: David Pugliese VICTORIA, British Columbia — The U.S. is threatening to pull the F-35 from Canada's fighter jet competitionif the ally to the north doesn't change requirements for the winning bidder to stipulate specific industrial benefits for domestic firms. The U.S. government is arguing that since Canada is a partner in the F-35 program it cannot request guaranteed industrial benefits for its companies. Canada has pre-qualified four aircraft for its fighter jet project worth up to 19 billion Canadian dollars (U.S. $14 billion): the Lockheed Martin F-35, Boeing Super Hornet, Eurofighter Typhoon and the Saab Gripen. The Canadian government plans to purchase 88 new jets to replace its aging CF-18 fighter aircraft fleet. Canada will require that a robust package of guaranteed industrial benefits or offsets be provided by the winning bidder, government officials have said. But the U.S. government has objected to that, as Canada is still a partner in the F-35 program, which does not guarantee participating nations a set number of contracts. Work on the F-35 program is based on best value and price. U.S. Navy Vice Adm. Mathias Winter, program executive officer for the Joint Strike Fighter, wrote Canadian procurement officials Dec. 18, 2018, pointing out that the F-35 agreement prohibits partners from imposing requirements for industrial benefits. “We cannot participate in an offer of the F-35 weapon system where requirements do not align with the F-35 Partnership," he noted in his letter. Winter's letter was leaked this week to defencs analysts and the Canadian journalists. The letter has prompted ongoing discussions between Canadian and U.S. procurement officials in an effort to work out some kind of solution, multiple industry and government sources told Defense News. But the Canadian government will also respect any decision by the U.S. to not bid the F-35 if an agreement can't be reached, sources added. The Canadian government is putting the final touches on the bid requirements for new fighter jet project. That bid package is expected to be issued sometime this year. Asked about the U.S. ultimatum, Ashley Michnowski, spokeswoman for Procurement Minister Carla Qualtrough, said feedback from aircraft suppliers is continuing to be collected by the Canadian government. That process has yet to be finished and a final request for bids is expected to be released soon, she added. Michnowski said Canada continues to be a member of the Joint Strike Fighter program, giving the country “the option to buy aircraft through the program, should the F-35 be successful in the competitive process for the future fleet.” Lockheed Martin Canada noted in a statement that Canadian firms have earned more than $1.2 billion in work on the program, resulting in hundreds of domestic jobs. “We continue to provide our feedback to the U.S. government, which leads all government-to-government discussions related to the Canadian fighter replacement competition,” the statement added. Email: dpugliese@defensenews.com https://www.defensenews.com/air/2019/05/08/us-canada-talks-underway-to-decide-if-the-f-35-will-be-pulled-from-canadas-fighter-competition/

DAVID PUGLIESE, OTTAWA CITIZEN The defence and aerospace industry is abuzz about the letters the U.S. government sent to Canada over the upcoming competition to acquire a new fleet of fighter jets to replace the RCAF's CF-18s. In short, the Trump administration has given an ultimatum to Prime Minister Justin Trudeau and his government. If Canada insists that industrial and technological benefits must come from the outlay of $19 billion for a new fighter jet fleet then Lockheed Martin's F-35 stealth jet is out of the race. Full stop. The U.S. argument is that because Canada is a partner in the F-35 program it cannot ask Lockheed Martin to meet specific industrial benefits for a Canadian competition if the F-35 is selected. Under the F-35 agreement, partner nations are prohibited from imposing requirements for industrial benefits as the work is determined on the best value basis. In other words, Canadian firms compete and if they are good enough they get work on the F-35 program. Over the last 12 years, Canadian firms have earned $1.3 billion U.S. for their work on building F-35 parts. The U.S. had boldly stated it cannot offer the F-35 for the Canadian competition if there are requirements to meet for set industrial benefits. But that ultimatum could seriously backfire on the Trump administration. Trudeau and the Liberal government has never been keen on the F-35 (Trudeau campaigned against purchasing the jet). There have also been a number of negative headlines over the last year outlining the increasing maintenance costs for the F-35s, not a good selling point for the jet. The U.S. ultimatum may have just given Trudeau a way out of his F-35 dilemma, particularly if the prime minister can say that it was it was the Americans themselves who decided not to enter the F-35 in the Canadian competition. Trudeau will also be able to point to the other firms ready and keen to chase the $19 billion contract. Airbus, a major player in Canada's aerospace industry, says it is open to producing its Eurofighter Typhoon in Canada with the corresponding jobs that will create. Boeing, which has a significant presence in Canada, will offer the Super Hornet. Saab has also hinted about building its Gripen fighter in Canada if it were to receive the jet contract. To be sure, if the U.S. withdraws the F-35 from the competition, retired Canadian military officers and the defence analysts working for think-tanks closely aligned with the Department of National Defence be featured in news reports about how the Royal Canadian Air Force will be severely hindered without the F-35. Some Canadian firms involved in the F-35 program may complain publicly about lost work on the F-35 program but companies tend not criticize governments for fear they won't receive federal contracts or funding in the future. There will be talk about how U.S.-Canada defence relations will be hurt but then critics will counter that U.S. President Donald Trump used national security provisions to hammer Canada in ongoing trade disputes. And let's face it. Defence issues are rarely a factor in federal elections or in domestic politics. The Trump administration, which is not the most popular among Canadians, may have just given Trudeau a political gift. https://ottawacitizen.com/news/national/defence-watch/trump-may-have-given-trudeau-the-excuse-he-needs-to-ditch-the-f-35